Inflows this year may top US$100b
Foreign direct investment (FDI) on the mainland expanded 44.5 per cent in the first seven months of the year despite a slowdown in domestic economic growth.
FDI inflows hit US$8.3 billion last month, a significant increase from the US$5 billion recorded in the same month last year, according to figures released yesterday by the Ministry of Commerce.
Overseas investment totalled US$60.72 billion between January and July, suggesting that total FDI this year might break the US$100 billion mark for the first time. Last year's figure was US$74.8 billion.
The sharp increase came despite a slowdown in economic growth to 10.4 per cent in the first half of the year, down from last year's full-year figure of 11.9 per cent.
It also keeps the pressure on Beijing to curb speculative capital hoping to benefit from the appreciation of the yuan. Economists believe this year's inflated FDI figures partly reflect so-called hot money disguising itself as legitimate investment.